U.S. refineries have reduced gasoline output to record lows, prioritizing diesel and jet fuel production to capture higher margins as the industry shifts away from traditional gasoline-heavy refining models.
The article only reports a refinery product-yield shift: gasoline averaged below 45% of output in the first eight months of 2026, with more diesel and jet fuel made. It gives no crude throughput, inventory or demand figures, so the effect on crude oil prices is unclear.
U.S. refineries are pivoting production away from gasoline, with yields dropping below 45% in the first eight months of 2026. This strategic shift toward diesel and jet fuel reflects changing market economics and higher profit margins for middle distillates, marking a departure from historical production norms.
Refineries are prioritizing the production of diesel and jet fuel because these products currently offer higher profit margins, making them more economically attractive than gasoline.